RBA throws another economist under the deflation bus

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By Leith van Onselen

With Australia’s consumer economy facing massive headwinds from the plummeting housing market and the likely reversal in the household savings rate:

The RBA’s head of economic analysis, Alexandra Heath, has reached once more for the wage growth unicorn, claiming that rising wages growth will offset any fall in household consumption. From The AFR:

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About the author
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.